AI is less regulated than milk, says Microsoft president

KUALA LUMPUR, UK, WASHINGTON, BRUSSELS, CHINA, 12 OCTOBER 2026 —

Microsoft President Calls for Global AI Rules, Praises UK’s Leadership as Tech Giants Face Growing Scrutiny

KUALA LUMPUR — Microsoft President Brad Smith has urged the establishment of global safety regulations for artificial intelligence, arguing that current oversight is "less stringent than for milk or washing machines," and that the UK stands in the "best position" to lead the effort. His comments, made in an interview with the BBC, contrast sharply with U.S. President Donald Trump’s stance, who has advocated for self-regulation to avoid ceding advantage to Chinese rivals.

Smith’s call for mandatory incident reporting, independent audits, and "emergency brakes" for AI systems reflects mounting concerns among tech leaders about the technology’s unchecked potential. While Trump hosted a White House meeting last month where major U.S. tech firms pledged voluntary oversight, Smith acknowledged the move as a "necessary step" but warned it was insufficient to address risks posed by less responsible actors.

---

The urgency of AI regulation has intensified amid warnings from experts that the technology could pose existential threats to humanity. Smith, speaking on the BBC’s Big Boss Interview podcast, framed AI as both a "tool and a weapon," emphasizing the need for proactive measures.

He proposed that companies be legally obligated to disclose breaches by rogue AI agents and subject new products to pre-release evaluations by independent third parties—a model he argued already exists for other consumer goods.

"Right now, your washing machine is subject to more safety rules than AI," Smith said. "Every carton of milk that you see in the grocery store is subject to safety rules and inspection." He cited the UK’s AI Security Institute, established under former Prime Minister Rishi Sunak’s government, as a model for global leadership.

"In the world of technology, most people would say the UK is the leader in having this technical capability," Smith claimed, suggesting the country’s approach would be more palatable to U.S. policymakers than the European Union’s regulatory framework.

Smith’s remarks come as geopolitical tensions over AI accelerate. Trump has repeatedly asserted that "whoever wins AI, wins," pushing for rapid U.S. dominance while opposing stricter controls. His administration hosted executives from OpenAI, Anthropic, Nvidia, SpaceX, Meta, and Google at the White House in late September, where they signed a "morally binding" pledge to collaborate with independent auditors. Microsoft, which has not yet signed the document, endorsed the principle but stressed its limitations.

"When you look at AI agents that have escaped human control, when you look at models that are so powerful that they’re putting the world’s cybersecurity at risk, I would say: The moment has arrived," Smith said. He argued that the UK’s neutral standing—unlike Brussels’ perceived regulatory heavy-handedness—could facilitate broader consensus. "When you look at AI agents that have escaped human control, the moment has arrived," he reiterated.

"Let’s speak calmly, maybe even softly, but firmly, and start to bring people together."

---

The debate over AI governance has gained traction in Malaysia and the broader Asia-Pacific region, where governments are grappling with the technology’s economic and security implications. Malaysia’s Digital Economy Corporation (DEC) has previously outlined plans for an AI governance framework, emphasizing ethical development and national security, though no binding regulations have been enacted. Regional neighbors like Singapore and South Korea have also proposed AI ethics guidelines, but enforcement mechanisms remain underdeveloped.

Smith’s emphasis on "emergency brakes" or kill switches for AI systems aligns with concerns raised by regional policymakers about the risks of autonomous decision-making in critical infrastructure, healthcare, and finance. The Malaysian government, for instance, has expressed caution about AI-driven automation in sectors like banking, where regulatory bodies such as Bank Negara Malaysia (BNM) have called for transparency in algorithmic lending decisions.

Industry stakeholders in Malaysia have largely supported voluntary self-regulation, mirroring Trump’s preference for market-led oversight. However, critics argue that voluntary measures may not suffice to address systemic risks, particularly as AI models grow more sophisticated. A report by the Malaysian AI Council in 2025 highlighted gaps in accountability, noting that "without mandatory audits, the most vulnerable users—such as low-income consumers or marginalized groups—remain exposed to biased or harmful outcomes."

---

Smith’s critique of self-regulation underscores a broader industry divide. While major tech firms like Microsoft, Google, and OpenAI have publicly backed cautious development, smaller or less transparent players may lack incentives to comply with voluntary standards. "The challenge for any self-regulatory regime is that the good companies will do what you want," Smith said. "It’s the companies that are not as responsible that you need to worry about."

The White House’s recent pledge includes provisions for audits to ensure AI systems do not "hack or access technical systems in unintended ways," a nod to growing concerns about AI-driven cyber threats. However, Smith questioned whether such measures would be enforceable without legal mandates. "It’s a good step, it’s a necessary step," he said, "but I don’t think it’s sufficient any longer."

The timing of Smith’s comments coincides with escalating global AI experiments, including China’s rapid deployment of AI in surveillance and military applications. While the U.S. and EU have focused on ethical and safety concerns, China’s approach has prioritized national security and economic competitiveness, raising fears of a regulatory arms race.

Malaysia, as a member of the Association of Southeast Asian Nations (ASEAN), has positioned itself as a bridge between Western and Chinese AI philosophies, advocating for balanced development that avoids both overregulation and unchecked innovation.

---

Regional analysts note that Malaysia’s approach to AI governance has been cautious but pragmatic. The DEC’s 2026 AI Roadmap outlines five pillars: ethical AI, workforce reskilling, infrastructure development, public-private partnerships, and international collaboration. However, critics argue that the roadmap lacks concrete enforcement mechanisms, leaving room for interpretation.

"Malaysia’s stance is pragmatic, but without teeth, the guidelines risk becoming aspirational rather than actionable," said Dr. Nor Azwadi Che Sidik, a senior fellow at the Malaysian Institute of Economic Research (MIER).

Smith’s call for global standards could influence Malaysia’s future policy direction, particularly as the country seeks to position itself as a regional AI hub. The Malaysian government has invested heavily in AI research through initiatives like the National AI Strategy, but experts warn that without clear regulatory frameworks, the country risks falling behind in both safety and innovation.

---

The contrast between Smith’s advocacy for UK-led global rules and Trump’s push for U.S. dominance reflects deeper geopolitical tensions over AI’s future. While the UK’s AI Security Institute has been praised for its technical expertise, its ability to drive international consensus remains untested. The EU’s AI Act, though comprehensive, has faced criticism for its bureaucratic complexity, while China’s opaque regulatory environment has deterred foreign collaboration.

Smith’s suggestion that the UK’s approach would be more palatable to U.S. policymakers than Brussels’ highlights a potential diplomatic pathway. "In Washington DC, people don’t look at the UK and they don’t look at London the way they look at Brussels—that’s a strength," he said. The UK’s historical ties with the U.S.

and its reputation for pragmatic governance could make it a more effective mediator than the EU, which has been accused of overreach by American tech firms.

---

For Malaysia and the region, the evolving global AI debate presents both opportunities and challenges. On one hand, stricter international standards could provide a framework for ethical AI development, reducing risks in sectors like finance and healthcare. On the other, overregulation could stifle innovation in a region where digital transformation is a key economic priority.

Smith’s remarks also underscore the need for Malaysia to clarify its own stance. While the DEC’s roadmap provides a foundation, the absence of binding regulations leaves the country vulnerable to both unchecked risks and competitive pressures from China and the U.S. "Malaysia must strike a balance—ensuring safety without smothering innovation," said Tan Sri Dr. Awang Adek, former Minister of Science, Technology, and Innovation.

---

As the global conversation on AI regulation intensifies, Smith’s call for urgency resonates with growing concerns about the technology’s ungoverned trajectory. His proposal for mandatory incident reporting, independent audits, and emergency brakes represents a departure from voluntary self-regulation, signaling that the tech industry may soon face unprecedented scrutiny.

For now, the UK’s role as a potential leader in AI governance remains speculative, but Smith’s endorsement could accelerate its ambitions. Meanwhile, Malaysia and the region must navigate a landscape where geopolitical rivalries, ethical dilemmas, and economic imperatives collide. The next phase of AI development will likely determine whether the technology becomes a force for global progress—or a source of unmanageable risk.

Related: Microsoft · Brad Smith